ANNUAL REPORT

2O2O

MISSIONThe Wholesale & Specialty Insurance

Association is the non-profit association

of professionals and specialty market

leaders dedicated to the wholesale

distribution system. The Wholesale

& Specialty Insurance Association

represents the interests of its members

and the valuable role they play in the

insurance market through networking,

education, talent recruitment and

development, regulatory and legislative

advocacy for the wholesale, specialty

and surplus lines industry, and by

promoting the value of the wholesale

distribution channel.

CONTENTS 3 President’s Message

5 Membership

6 Networking and Events

8 Education

10 Talent Development, Internship and U40

12 Legislative Advocacy, Compliance and PAC

14 Wholesale Value

16 WSIA Award Honorees

18 WSIA Education Foundation

19 WSIA Diversity Foundation

20 WSIA Financials

22 Leadership

WSIA’S VALUE PROPOSITION

The Wholesale & Specialty Insurance Association is the only association serving the entirety of the wholesale, specialty and surplus lines industry. WSIA strengthens members’ competitive advantage in the insurance marketplace by promoting the market and value of wholesale distribution, protecting and advocating for an effective regulatory and legislative environment, supporting business through networking and enabling professionals with education, professional training and talent development opportunities.

Bryan Sanders

WSIA President

ANNUAL REPORT

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On behalf of the Board of Directors, I am pleased to present the Wholesale & Specialty Insurance Association’s 2020 Annual Report, highlighting the association’s financial health and accomplishments during the year. I am consistently proud of our shared work, but I am perhaps more gratified by last year’s achievements and financial position than others because of the collective hurdles we have cleared to reach them. Words fail to accurately convey the challenges that the COVID-19 pandemic introduced to our personal lives, business world and global economy. Unprecedented is overused and yet so completely accurate; it falls short to say that we could not have imagined the way the last twelve months would unfold. For that reason, I am immensely honored to outline the ways in which WSIA thrived as an association and worked with urgency on behalf of members in 2020. WSIA experienced many of the same impacts that our own businesses did last year, and the association had to shift quickly. We went from hosting in-person networking events, on-site education programs, and on-the-ground legislative advocacy to providing these same benefits in online and virtual formats. Those reenvisioned events and programs have been successful. We continued to gather in WSIA-hosted virtual platforms for business and networking meetings, and hundreds of WSIA members have completed professional development and technical training without a pause. As the ripple of the pandemic spread, WSIA’s legislative advocacy efforts also became increas-ingly important and valuable for members. The association monitored evolving state and federal legislative, regulatory and compliance updates daily beginning in early-March. WSIA launched comprehensive COVID-19 impact webpages where updates were posted, and the team monitored and messaged those as well as state and federal business interruption and liability immunity developments. WSIA also collaborated

with other industry trade associations to ensure that our collective voice and policy positions were represented on these issues. We continue to manage through the pandemic’s impacts, but it is important that we also keep an eye on the horizon. WSIA and the WSIA Education Foundation’s focus on student-centered oppor-tunities to develop our talent pipeline thrived and evolved last year with a move to virtual symposiums, career fairs, and ongoing scholarship and education opportunities for our future professionals. Additionally, the WSIA Board of Directors was thrilled to support the development of the WSIA Diversity Foundation. This new foundation’s mission to drive change and enhance diversity in our industry dovetails with the board’s strategic initiative around diversity, equity and inclusion and will be a natural partner and extension to many of the association’s outreach initiatives. WSIA has maintained this high-level of member benefits and service while also maintaining a positive financial position in a challenging year. While many of the difficult decisions made this year regarding events and programs had significant impacts on the association’s budget, due to proactive planning and contract management, the association ended the year in a strong financial position. The last year also reinforced the importance of strong financial management and maintaining a robust operating reserve, which the WSIA Board of Directors has long championed. Last, thank you to the more than 390 committee volunteers who help make all of this work possible. You are vital to the association’s ability to continue to offer unparalleled value to all members. Thank you all for your support of this association and industry.

Dear WSIA Members,

PRESIDENT’S MESSAGE

WSIA MEMBERSHIP

WSIA MEMBERSHIPDuring 2020, the Membership & Ethics Committee reviewed

28 new membership applications and approved 7 U.S.

Wholesale applications, 2 U.S. Insurance Market applications,

4 Associate and 12 Service Member applications.

WSIA is committed to providing premier

networking and business events, programs and

services to all member firms, as well as effective

representation and advocacy to promote and

protect the wholesale, specialty and surplus

lines industry at an exceptional level. This report

highlights WSIA’s fiscal year 2020 financial

position and accomplishments, and it celebrates

the strength and resilience of the wholesale

distribution system and the industry in a year

deeply impacted by the COVID-19 pandemic. The

WSIA Board of Directors and team collaborate

with a strong group of dedicated volunteers,

whose work during the last year ensured that

WSIA membership continues to deliver a valuable

return on your membership investment.

We sincerely appreciate the contributions

of each WSIA member firm and professional

in maximizing the association’s relevance and

effectiveness. Thank you for all you contribute

to your association and this industry.

Brady Kelley

Executive Director

Service180

U.S. Wholesale299

Associate80

U.S. Insurance Market125

US Wholesale Members 299

U.S. Insurance Market Members 125

Associate Members 80

Service Members 180

Total Member Firms 684

925 branch offices 1,609 total offices

WSIA MEMBERS BY TYPE

WSIA COMMITTEE VOLUNTEERS BY THE NUMBERS• 391 committee volunteers have a combined

1,168 years of committee service.

• 123 committee volunteers were new in 2020.

• 44% were U.S. Wholesale Members.

• 41% were U.S. Insurance Market Members.

• 6% were Associate Members.

• 9% were Service Members.

• 29% were also members of WSIA’s U40.

Thank you to these 2020 WSIA Committee Volunteers!

NETWORKING AND EVENTS

UNDERWRITING SUMMITThe Underwriting Summit offers designated time for networking and business meetings for the underwriting, delegated authority, program specialist and professional and financial lines segments of the WSIA membership, as well as firm leadership.

• 1,172 members from 327 member firms attended 2020 Underwriting Summit in Palm Desert, CA, March 1-4.

• 86 tables were reserved in The Club, Vendor and Program Specialist Lounge.

• Retired Gen. Colin L. Powell was the keynote speaker, and the WSIA Annual Business Meeting and Awards recognition were featured.

Participants by member type were:

INSURTECHThe Insurtech Conference offers sessions on industry disruption and transformation. The conference highlights the imperative of developing a digital strategy and solutions to streamline the distribution chain and enhance the customer experience. The 2020 event was scheduled for March 15-18 in New Orleans, LA but was canceled due to stay-at-home orders issued during that time.

• 355 WSIA members and Insurtech professionals were registered to participate.

• 42 exhibitors were registered to participate.

ANNUAL MARKETPLACEAnnual Marketplace is the premier wholesale, specialty and surplus lines industry event. More than 5,000 members typically attend the event for networking and business meetings throughout the week in the Brokers’ Lounge and The Club.

• 4,212 professionals from 247 member firms participated in a virtual platform, September 14-17.

• 127 Virtual Brokers’ Lounge Tables were reserved.

• WSIA hosted daily webinar sessions for participants which were also available after the event.

Participants by member type were:

U40 VIRTUAL CONNECTU40 Virtual Connect was a forum for connection with other under-40 wholesale, specialty and surplus lines industry young professionals for education and the exchange of industry information.

• 154 registrants from 55 member firms participated in a virtual platform October 19-22.

• The virtual event featured education sessions, roundtable discussion, networking and supported the WSIA Diversity Fund through generous contributions from WSIA member firms and U40 individuals.

Widely recognized for Annual Marketplace and Underwriting Summit, members rely on WSIA for unparalleled networking opportunities. These events, and the Insurtech Conference and U40 Annual Meeting, provide forums for members from all corners of the surplus lines industry to come together and network, conduct business and expand their knowledge, and are a key member benefit. The COVID-19 pandemic had a profound impact on these networking events. While unable to gather in-person, WSIA produced successful virtual events where possible and we look forward to the time we can meet on-site again.

41% U.S. WHOLESALE MARKET

24% INSURANCE MARKET

17% ASSOCIATE

17% SERVICE

61% U.S. WHOLESALE MARKET

28% INSURANCE MARKET

5% SERVICE

5% ASSOCIATE

INSURTECH CONFERENCE

U40 Virtual Connect was a forum

for connection with other under-40

wholesale, specialty and surplus

lines industry young professionals

for education and the exchange

of industry information.

The Insurtech Conference offers

sessions on industry disruption

and transformation.

The Underwriting Summit offers

designated time for networking and

business meetings.

NETWORKING

IN 2020, 265 member professionals participated in WSIA

education programs. WSIA hosted three on-site education

programs with 93 participants and six virtual programs with

172 participants during the year.

Consultative Selling and Negotiations – 53 total participants

21 in person, 32 virtual

Effective Coaching – 40 total participants

20 in person, 20 virtual

Underwriting Boot Camp – 57 participants

Virtual program

Marcus Payne Advanced E&S – 63 participants

Virtual program

Surplus Lines Management – 52 participants

In person

ONLINE COURSESSurplus Lines Fundamentals – 65 member participants,

186 student participants

Surplus Lines Compliance – 332 participants

WEBINARS• WSIA hosted seven free member webinars during the

year, and 2,025 members participated during the live

sessions. Recordings of the webinars have been viewed

408 times.

• The webinars were hosted by the WSIA Education

Committee, Emerging Issues & Innovation Committee,

U40 and WSIA Team on topics including leadership and

management, cannabis coverage, COVID-19 impacts on

the industry, Stamping Office updates and cyber liability.

EMERGING ISSUES & INNOVATION TREND REPORTS AND HEAT MAP• The WSIA Emerging Issues & Innovation Committee

updated 15 Trend Reports with COVID-19 implications

and introduced Infographic Summaries for all reports that

offer visual overviews of the analysis. The reports identify

how trending topics are impacting the wholesale, specialty

and surplus lines industry.

• The 2020 Heat Map was published following a two-stage

survey that gathered member feedback on emerging trends

and their impact on the industry. 326 WSIA members

participated in the survey representing all member

categories. The Heat Map identifies and illustrates

predominant themes and is available to members

and media. Findings are also incorporated into future

planning for education program curriculum, member

webinars and research topics.

EDUCATION

WSIA provides professional learning to advance the careers and develop the talent of members’ employees. The association offers a full slate of education programs for new and seasoned E&S professionals. Designed to strengthen knowledge and cultivate strong leadership skills, WSIA education programs are offered in a progressive format so participants are appropriately challenged through every phase of their careers. During 2020, additional programs were moved to virtual platforms to facilitate remote learning and WSIA began offering individual webinars at no charge to all members. The WSIA Emerging Issues & Innovation Committee also produced educational materials and resources for members at no charge.

Designed to strengthen knowledge and cultivate strong leadership skills, WSIA education programs are offered in a progressive format so participants

are appropriately challenged through every phase of their careers.

EDUCATION

TALENT DEVELOPMENT, INTERNSHIP AND U40

WSIA is committed to developing awareness about surplus lines career opportunities and cultivating interest in them with young and emerging talent. This outreach includes campus and student visits, education opportunities, symposiums and career fairs, and scholarships. During 2020, the association’s Career Development Committee, Internship Committee, WSIA’s U40, and the WSIA Education Foundation undertook these initiatives.

CAREER DEVELOPMENT • Career Development Committee and U40 members

reached more than 2,100 college students with WSIA’s

career development message in a mix of virtual and

in-person classroom presentations.

o 13 in-person college visits, 53 virtual college visits

• With financial support from the WSIA Education

Foundation, conducted one in-person Extreme Risk

Taker student symposium and two virtual symposiums.

o Extreme Risk Takers – Los Angeles (in-person)

40 student participants from four schools

o Extreme Risk Takers – Tempe (virtual)

86 students from 20 schools

o Extreme Risk Takers – Atlanta (virtual)

144 students from 25 schools

o 36 WSIA member firms participated in symposium career

fairs with the opportunity to meet and talk with students

from across the country during these symposiums.

• Participated in five Gamma Iota Sigma events, both virtual

and in-person, and visited with 382 students during hosted

career fairs.

• Continued a financial partnership with Gamma Iota Sigma,

focused on sustainable growth and diversification of the

insurance industry’s talent pipeline.

• Hosted the WSIA White Paper Contest to expand surplus

lines awareness and knowledge for risk management and

insurance students. Students submit papers on one of three

pre-selected topics and winners are awarded cash prizes.

o Spring 2020 contest – 46 participants from 10 universities

submitted research papers on the topics of: Wildfires, CTE/

Head Trauma or Product Recalls and the Meat Industry.

o Fall 2020 contest – 30 participants from 15 universities

submitted research papers on the topics of: How Will

Insurtech Change the Future of Insurance?, Social

Inflation in the Excess and Surplus Lines Industry and

COVID-19, the Remote Worker and the Impact of

Workers’ Compensation.

• The WSIA Education Foundation committed a total of

$120,000 to 26 students at 19 universities through the

Derek Hughes Scholarship Program.

INTERNSHIPS• 21 interns were selected to be hosted by 36 WSIA member

firms for summer 2020 positions.

o The program was ultimately canceled due to

COVID-19, but 2020 interns were offered other

opportunities including:

+ Four virtual education sessions: Overview of the

E&S Industry, A Day in the Life of a Broker, A Day in

the Life of an Underwriter and Personal Branding.

+ Pairing with WSIA mentors and four virtual networking

meetings with Internship Committee members.

o Eligible summer 2020 interns were extended a 2021

opportunity, and five elected to participate.

WSIA’S U40U40 is a dynamic group of insurance professionals under

the age of 40 who are currently employed by WSIA member

firms. U40 encourages the exchange of educational and

industry critical information among members, promotes

professionalism and is an avenue for young insurance

professionals to become more involved in the surplus lines

community. During 2020, WSIA’s U40:

• Membership grew to more than 1,200 individuals.

• Hosted U40 Virtual Connect with three days of education

and networking opportunities for 149 U40 members.

• Hosted a webinar, “Cannabis, A Budding Industry,” with

521 participants.

TALENT DEVELOPMENT

WSIA advocates on behalf of members to promote and protect their position in the market. Our mission is to advocate for governing principles and objectives that lead to more uniform and efficient business operations within the wholesale, specialty and surplus lines industry. With the support and direction of the Legislative Committee and Board of Directors, WSIA represents its members before state and federal legislators, insurance regulators and other groups influencing and impacting the industry’s compliance and business practices. The WSIA Political Action Committee supports candidates for the U.S. House and Senate whose philosophies are consistent with the goals of WSIA, the surplus lines industry and the wholesale distribution system with contributions from WSIA member individuals.

LEGISLATIVE ADVOCACY, COMPLIANCE & PAC

IN 2020, THE ASSOCIATION:• Invested $334,394 in state and federal advocacy services

focused on:

o State regulatory reforms to uniformly apply the

Nonadmitted and Reinsurance Reform Act (NRRA).

o Reform of state insurance codes regarding surplus

lines policy fees.

o Representation of the surplus lines industry when states

were considering moratoriums and other regulatory

requirements related to the COVID-19 pandemic.

o Advocacy of immediate appointments to the National

Association of Registered Agent and Brokers (NARAB)

Board of Directors.

o Support of long-term reauthorization of the National

Flood Insurance Program (NFIP).

o Promoting revisions in the federal definition of private

flood insurance.

• Planned a March 2020 Legislative Fly-In, canceled due to

the COVID-19 pandemic, with federal advocacy efforts

focused on:

o Business Interruption Legislation

o Federal COVID-19 Recovery Fund

o COVID-19 Liability Immunity Legislation

• Adopted policy positions on state regulatory and federal

legislative responses to the impacts of the COVID-19

pandemic on April 1 that provided guidance for the

association’s approach with state and federal regulators

and legislatures.

STATE ADVOCACY• Quickly responded to regulatory and legislative develop-

ments impacting the surplus lines industry from the onset

of the COVID-19 pandemic with dedicated webpages

to provide detailed information on activity for each state

that directly impacts the surplus lines industry. Relevant

insurance departments’ bulletins and directives, state

legislative proposals, and federal legislative activity were

maintained for members to easily access.

• Achieved full uniformity with all states taxing 100% of

surplus lines policies entirely at the home state rate when

Florida eliminated the taxation of multistate surplus lines

policies based on the rate where the risk is located. As of

July 1, 2020, 100% of the tax on multistate policies, where

Florida is the home state of the insured, are calculated at

Florida’s new 4.94% surplus lines tax rate. WSIA has pursued

national uniformity on this subject since the Nonadmitted

and Reinsurance Reform Act was passed by Congress

in 2010.

• Worked with industry partners to eliminate the prescriptive

cap on surplus lines agent policy fees in Michigan. Michigan

fees had been capped at $50 in 2007 and had only been

increased by the Consumer Price Index (CPI) during that

time. The new law eliminated the cap on commercial

policy fees and raises the cap on personal policies to $100

or 10%, whichever is greater. The fee must be fully

disclosed in writing and in itemized detail to the insured.

Michigan joined the majority of states that permit

reasonable fees to be charged in a commercial surplus

lines transaction.

WSIA PAC• Contributions to the WSIA PAC came from 255 individuals

and totaled $160,115. While contributions were short of the

$200,000 goal established by the WSIA PAC Committee,

WSIA member support of the PAC was much appreciated

during a year that included important elections and was

challenging for many individuals.

• Contributed $68,500 in 2020 to federal candidates

whose philosophies align with and the surplus lines

industry’s goals.

Thank you to these 2020 PAC contributors.

ADVOCACY

WHOLESALE VALUE

DURING 2020, WSIA:• Hosted 132,734 user sessions on www.wsia.org, with a

total of 393,688 pageviews.

• Invested $192,539 in the Wholesale Value messaging

campaign in fiscal year 2020. The messaging campaign

generating an estimated $204,309 in earned editorial

placement, and approximately 2.34 million impressions

through paid advertising.

• Delivered 169 WSIA newsletters and e-News updates to

members, with an average open rate of 31.1%.

• Utilized LinkedIn and Twitter to cross-promote WSIA News

and events and provide members with an alternate way

to learn about upcoming programs and opportunities.

WSIA also completed a membership survey, as part of the

WSIA Board of Directors’ strategic focus on the association’s

value proposition, and to better understand members’

communication preferences and perceptions on the value

of their membership investment. That study, conducted

by Reagan Consulting, had a 17.75% firm response rate

and found:

• Members rated WSIA programs and services as “very

valuable” overall.

• Respondents rated WSIA’s legislative, regulatory and

compliance work and networking events as the two top

member benefits with “extremely valuable” ratings.

• 98% of those who completed the survey reported

frequently or always reading WSIA updates, and shared

their preferences regarding their frequency. WSIA is

sharing shorter, more frequent updates as a result.

WSIA is committed to its members and to the wholesale distribution system. In honoring that commitment, WSIA messages the value of the wholesale distribution system to the retail marketplace by incor-porating the benefits of the wholesale distribution system in all internal and external communications and consistently linking the key attributes of WSIA member wholesalers to the WSIA message. Additionally, WSIA proactively cultivates relationships to leverage earned media placements promoting the wholesale distribution system.

Hosted 132,734 user sessions on www.wsia.org, with a total of 393,688 pageviews.

WHOLESALE VALUE

DAVE LEONARD

Vincent Donahue/Charles McAlear Industry Award

Dave Leonard was honored with the Vincent Donahue/

Charles McAlear Industry Award. As the association’s

highest distinction, the award honors individuals who have

made significant contributions to the association and the

wholesale, specialty and surplus lines industry. It is named

after Vincent Donahue and Charles McAlear who were

pioneers of our legacy organizations. Donahue served

as president of Jefferson Insurance Company and was

instrumental in encouraging competitors to join AAMGA.

McAlear initiated organizational efforts to form NAPSLO as

the national surplus lines association in the early 1970s and

served as its first president from 1975 to 1977.

Leonard has served as Chairman and CEO of RSUI since

2012 and began his career there in 1999. Prior to RSUI he

worked in Casualty Underwriting management for the Crum

& Forster Companies and Treaty Reinsurance Underwriting

for Employers Reinsurance Corporation. He served on the

WSIA Board of Directors, co-chaired the Legislative and

Education Committees, chaired the Executive Committee

during his 2016-2017 term as NAPSLO President, and has

served as a panelist and instructor at many education

programs for the last decade. Dave graduated from East

Carolina University with a BS in Business Administration.

It was a privilege to honor him for his countless contri-

butions to the association as a volunteer, board member,

committee chair, leadership through the AAMGA/NAPSLO

merger during his term as NAPSLO’s President, his tireless

promotion of the association’s value and important work,

and his exceptional leadership to the industry.

RICHARD SCHMITZER

Earle Dillard Award

Richard Schmitzer was honored with the Earle Dillard

Award, which honors the contributions and outstanding

service of a Committee Chair. The award is named after

Earle Dillard who served as president of Bloss & Dillard and

as AAMGA President from 1973-1974. He led many AAMGA

initiatives over many years, including the mid-1960s group

that shaped many of the AAMGA’s operating policies and

the formation of the AAMGA University Foundation in 1988.

Schmitzer joined James River Insurance Company in

2009 as Senior Vice President and Chief Underwriting Officer

and has served as President and CEO since 2010. Prior to

James River, he spent 19 years with Scottsdale Insurance

Company. Schmitzer has served on the WSIA Board of

Directors since 2016 and as co-chair of WSIA’s Internship

Committee. He earned a BS in Business Administration and

Economics from Central Michigan University.

He was honored for his exceptional support to the WSIA

Internship Committee since joining as co-chair in 2016 and

the great deal of time and effort he has invested in making

the program the outstanding asset it has become.

2020 AWARD HONOREES

AMICIA HINE

Dana Roehrig Award

Amicia Hine and Christa Nadler were honored with the Dana

Roehrig Award. Named after Dana Roehrig, who served as

the second president of NAPSLO, the award recognizes the

efforts of outstanding volunteers to one of the association’s

working committees.

Amicia Hine is the former President and CEO of McClelland

& Hine, Inc. (MHI). She now serves as Executive Vice President

of Worldwide Facilities, LLC. She was recognized for her

exceptional support of the WSIA Legislative Committee and

coordination with the Texas Surplus Lines Association (TSLA)

and the TSLA’s work with the Texas Department of Insurance

(TDI) during 2020. Her leadership on the TDI’s regulation

requiring the reporting of policy limits and resulting impacts

was instrumental in coordinating the industry’s response to the

TDI and the Surplus Lines Stamping Office of Texas, which the

TDI continues to consider as the regulation is implemented.

Amicia invested a great deal of time and energy in ensuring the

best possible solution for TSLA and WSIA members.

Christa Nadler serves as Area Executive Vice President at

Risk Placement Services and has held various roles there since

2006. She holds a BA in Business Administration and Finance

from the University of Michigan. Christa was recognized for her

exceptional support of the WSIA Career Development Committee,

WSIA Education Foundation symposiums and Gamma Iota

Sigma events on behalf of WSIA. Since 2015, her unwavering

support of WSIA initiatives through student outreach on college

campuses and at student events has been outstanding and a

tremendous benefit to the development of a talent pipeline

for the wholesale, specialty and surplus lines market. Christa’s

enthusiasm for the industry is contagious increasing the interest

in our industry, encouraging students to apply for internships,

scholarships and seek opportunities within our segment.

TO VIEW A LIST OF ALL PAST WSIA AND LEGACY ASSOCIATIONS AWARD HONOREES, VISIT WWW.WSIA.ORG/AWARDS

CHRISTA NADLER

Dana Roehrig AwardNICK CORTEZI

Richard Bouhan Legislative Advocacy Award

Nick Cortezi was honored as the Richard Bouhan Legisla-

tive Advocacy Award recipient, which honors individuals

whose advocacy helps advance the legislative interests of

the wholesale, specialty and surplus lines industry. It was

created in 2006 in recognition of Dick Bouhan’s outstanding

legislative work as Executive Director of the association

from 1988 to 2011.

Cortezi served as CEO of All Risks, Ltd. from 1999, and

he joined the company in 1987. He served on the Board

of Directors of WSIA’s legacy association, NAPSLO, and as

president in 2002-2003. He earned a BA in International

Relations and Political Science from Johns Hopkins University

and a Master of International Public Policy from the Johns

Hopkins School of Advanced International Studies.

He was recognized for his exceptional support of, and

service to, the association at the state and federal level.

His leadership in the WSIA, FSLA and industry coalition’s

work to reform Florida’s policy fee in 2019 ranks as one of

the industry’s most impactful regulatory changes since the

NRRA. His outreach, time and energy led to its success in

the Florida legislature.

WSIA EDUCATION FOUNDATION

The WSIA Education Foundation is dedicated to encouraging the educational development of all those interested in the excess and surplus lines business, to creating an understanding, and overcoming the misperceptions of the excess and surplus lines market.

DURING 2020, THE WSIA EDUCATION FOUNDATION:

• Committed a total of $120,000 to 26 students at

19 universities through the Derek Hughes

Scholarship Program.

• Sponsored the 2020 AM Best Special Report – U.S.

Surplus Lines Market Review. The report found:

o Surplus lines premium of $56.3 billion, setting a

record high; and

o An increase of 12.8% in surplus lines direct written

premium from 2018 to 2019.

• Provided financial support to 26 WSIA members to

participate in five WSIA education programs.

• Supported the Associate in Surplus Lines (ASLI) designation

and conferred 83 designees in 2020, bringing the total to

2,595 since 1997.

• Continued a financial partnership with Gamma Iota Sigma,

focused on sustainable growth and diversification of the

insurance industry’s talent pipeline.

• Revamped a University Grant Program to provide financial

assistance to insurance programs for support of the overall

program, specific events, or student event participation

in one of three programs. In 2020, eight universities

received a total of $3,550 in Friend of the Program grants,

and 16 students at two universities received an Emerging

Program grant to attend fall symposiums.

• Further defined a continued relationship with Georgia

State University to improve awareness of the wholesale,

specialty and surplus lines industry with students there.

• Administered and supported three student symposiums.

• Raised $603,450 to support the work of the Foundation

through member and corporate contributions and at the

2020 Rogan Cup Golf Tournament.

• The Foundation ended fiscal year 2020 with $13.7 million

in assets.

EDUCATIONFOUNDATION

WSIA DIVERSITY FOUNDATION

The WSIA Diversity Foundation, founded in 2020, is a charitable organization whose purpose is to promote and attract diversity in the areas of race, gender, sexual orientation and disability and to influence meaningful progress in the diversity of the wholesale, specialty and surplus lines insurance industry and its talent pipeline.

THE FOUNDATION STRIVES TO:

• Promote diversity and inclusion with the larger, unified

voice of the wholesale, specialty and surplus lines industry.

• Focus energy and purpose to influence meaningful progress

in the diversity of the industry and its talent pipeline.

• Coordinate programs to promote diversity, develop inclusive

workplace cultures, and cultivate diverse talent within

the industry.

• Foster synergy among the diversity programs and

initiatives of a large number of industry participants and

enhance WSIA’s existing talent development initiatives.

WSIA DIVERSITY FOUNDATION INITIATIVES WILL INCLUDE:

• Investments in the development of risk management

and insurance (RMI) programs at Historically Black

Colleges and Universities.

• Collaboration with other industry trade and professional

associations to partner, where possible, toward consistent

diversity, equity and inclusivity goals.

• Internship and scholarship opportunities for diverse

candidates.

• Grants to existing college/university risk management

and insurance programs advancing diversity goals.

• Student symposiums or academies to broaden

understanding about opportunities in the industry for

candidates from diverse backgrounds.

• Expanding existing online education and curriculum

in colleges and universities with or without existing

RMI programs.

Through 2020, the WSIA Diversity Foundation raised

$359,088 in contributions and an additional $905,000 in

pledges from WSIA member firms and individuals.

WSIA FINANCIALS

WSIA’s 2020 financial results were significantly impacted by the COVID-19 pandemic. 2020 operating revenues were down $3.6 million from 2019 because of networking events and education programs that were cancelled or converted to virtual platforms at very low registration rates. However, 2020 operating expenses were carefully managed at the onset of the pandemic, and expense savings arose from the same event and education programs, such that operating expenses were down $3.6 million to match our 2019 operating margin. Prudent event contracts, long-term relationships with our hotel partners and vendors, and strong corporate insurance and risk management programs were paramount in the association’s financial management of the pandemic’s impact. Despite these impacts, the association continued to invest in valuable committee work, networking events, the expansion of education programs and services for members, regulatory and legislative advocacy and important reforms that promote surplus lines solutions for insurance buyers, growth in programs to develop the talent pipeline for our industry, and our communication campaign promoting the value of wholesale distribution. Offsetting these additional investments was $736,086 of return on WSIA’s long-term investments. As a result, WSIA closed its 2020 fiscal year in strong financial position with net assets of $13.4 million, representing an operating reserve of 138%. The WSIA team and board continue to carefully review and benchmark the association’s operating reserve to maintain the appropriate financial strength to invest in services and resources to enhance the value of WSIA’s benefits to members and to

combat any future risks in the association’s operations. The association’s strong financial position will support continued investment in valuable services to WSIA members for many years to come. WSIA’s financial statements and investment results are monitored by the Audit & Compliance Committee and were reviewed by independent auditors, Mayer Hoffman McCann P.C. Their report included an unmodified audit opinion, no material financial statement adjustments, and noted no weaknesses in WSIA’s internal control structure.

“ Prudent event contracts, long-term

relationships with our hotel partners

and vendors, and strong corporate

insurance and risk management

programs were paramount in the

association’s financial management

of the pandemic’s impact.”

ANNUAL REPORT

2O2O

WSIA BALANCE SHEET WSIA INCOME STATEMENT

Dec. 31, 2020 Dec. 31, 2019

Assets

Cash $ 1,666,844 $ 3,353,479

Investments 12,691,088 11,605,148

Receivables 201,674 104,545

Prepaid Expenses 596,136 396,301

Property and Equipment 121,343 140,741

Total Assets $ 15,277,085 15,600,214

Liabilities and Net Assets

Liabilities

Accounts Payable $ 284,812 $ 159,309

Accrued Expenses 201,760 236,179

Deferred Rent 73,203 73,904

Funds Held for Others - 44,229

Deferred Revenue 1,335,803 2,679,139

Total Liabilities $ 1,895,578 3,192,760

Net Assets

Unrestricted 13,381,507 12,407,454

Total Liabilities

& Net Assets $ 15,277,085 $ 15,600,214

For the For the Year Year Ending Ending

Dec. 31, 2020 Dec. 31, 2019

Revenues

Membership Dues $ 2,761,635 $ 2,795,212

Program Service Revenue 3,247,090 6,825,530

Total Revenues 6,008,725 9,620,742

Expenses

Program Services 3,901,486 6,054,956

Committee Activities 858,943 1,939,123

General and Administrative 1,010,330 1,337,025

Total Expenses 5,770,759 9,331,104

Investment Income 736,087 1,305,489

Change in Net Assets 974,053 1,595,127

Net Assets, Beginning of Year 12,407,454 10,812,327

Net Assets, End of Year $ 13,381,507 $ 12,407,454

LEADERSHIP

Bruce KesslerWestchesterAlpharetta, GA

Phillip McCrorieRSUIAtlanta, GA

Richard SchmitzerJames River Insurance CompanyRichmond, VA

Coryn ThalmannJimcor AgenciesMontvale, NJ

U40 REPRESENTATIVELiam HutelmyerAmwins Group, Inc.Burlington, NC

2020-2021 EXECUTIVE COMMITTEE

BOARD OF DIRECTORS

Lynley DarkowSenior Marketing AnalystVicky FlemingAdministrative Assistant/Registration ManagerJulie FritzDirector of OperationsSusan HendersonDirector of Marketing & CommunicationsDebbie HillDirector of Meetings & ConventionsLindsay HollandProject CoordinatorBrady KelleyExecutive Director

Keri KishDirector of Government RelationsChelsea LenhartEducation Program and Events ManagerDenise MarshallOffice ManagerJohn MeetzSenior State Relations ManagerEmily StubbsControllerChris TimmermanCareer Development Programs ManagerJosh VengleyTechnical Manager

WSIA STAFF

PRESIDENTBryan SandersMarkel SpecialtyGlen Allen, VA

VICE PRESIDENTDavis MooreWorldwide Facilities, LLCLos Angeles, CA

SECRETARYBryan ClarkGorst & Compass InsuranceChatsworth, CA

TREASURERDave ObenauerCRC GroupCharlotte, NC

Patrick AlbrechtAssociated Insurance Administrators, Inc.Montgomery, AL

Shannon Dahlke ApplegateMHI, a division of Worldwide Facilities, LLCHouston, TX

Brenda (Ballard) AustenfeldRT Specialty Naples, FL

Tim ChaixR.E. Chaix & Associates Insurance Brokers, Inc. Irvine, CA

Wendy Houser Markel SpecialtyDallas, TX

Harry Johnson Johnson & Johnson, Inc.Charleston, SC

IMMEDIATE PAST PRESIDENTJoel CavanessRisk Placement Services, Inc.Rolling Meadows, IL

ANNUAL REPORT

2O2O

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